Question
Are all car insurance policies the same?
Is there a difference between a policy with one company or another assuming that the coverage is the same?
Answer
This is a great question! There can be huge differences between what is offered by one company or another. Not all policies are created equal even if the coverage amounts are the same. Here are a few examples of how policies can vary:
- Permissive Use - This means that you can give someone permission to drive your vehicle who isn't listed on your policy but is still covered to drive on a short term basis. Imagine you are out with friends for dinner and you have a bit too much to drink. If your policy doesn't allow for permissive use then your designated driver wouldn't be covered to take you home in your vehicle unless they were already listed as a driver on your policy.
- Mexico coverage - This means that your policy coverage will extend to follow you into the country of Mexico. There are restrictions concerning how far into the country you travel and for how long you will be staying, but if you plan to travel to Mexico it is a nice feature to have on your policy.
- Roadside assistance/Towing and Labor - The service option offered may or may not be 24/7, can be extremely limited in terms of what is covered, or you could be required to pay for the service up front and submit a receipt for reimbursement.